Building Audit Program - Building Permit Audit
MBS and PBS Findings Summary
9 October 2014
1. Background
1.1 Introduction
The VBA conducted a state-wide audit, from late 2012 to mid-2014, examining building permit files at
councils to measure the compliance of practitioners during the building permit process. The audit
specifically focused on material the relevant building surveyor (RBS) receives, considers, records and
submits to council. The scope of this audit was on documents contained in the building permit file and did
not include the review of the physical building work.
From September 2014, audit findings were communicated widely to all registered building surveyors in
Victoria, local government CEOs and industry groups. More information about the audit and the findings is
located on the VBA website: http://www.vba.vic.gov.au/practitioners/performance-audit.
The information below complements the content of the industry report. It aims to provide further details
on the compliance of council employees, to support to the Municipal Association of Victoria’s
development and delivery of education, training and tools.
1.2 Audit sample
The audit of 1000 building permit files took place in 20 councils. Councils were selected based on the
number of building permits issued – per regional/metropolitan zone, the 20 councils with the highest
building permit activity over the period January 2010 to December 2012.
Private and municipal building surveyors
The 1000 building permit files reviewed were issued by 212 registered building surveyors. This included
both private building surveyors (PBS) and council (council refers to municipal building surveyors (MBS) or
other council employee with delegation to act as the RBS). Further information relating to the audit sample
includes:
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Seven of the 20 councils in which the audit took place did not issue permits; therefore all permits
audited were issued by PBSs. In the other 13 councils, permits issued by council employees (MBS/MBS
delegate) represented between 2 percent and 52 percent of permits audited, reflecting the
proportions in the municipalities.
89 of the 1000 building permit files audited were for permits issued by council for sites located in their
municipality (by a total of 21 council employees).
45 files audited were for building permits issued by council for sites outside of their municipality (by a
total of 7 council employees).
Council employees issued permits ranged between one and 19, with an average of 4.1 permits
audited.
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Victorian Building Authority
2. Findings
2.1 Scope of findings
The audit sample of 1000 building permit files contained 134 that were issued by council (within and
outside of their municipality). The audit checklist was extensive and covered a broad range of legislative
and technical requirements. Not all checklist items were applicable to each file – this depended on the
type of building work for which the permit was issued, the class of building, the nature of the work, etc.
With less applicable items, there is less data to analyse and unfortunately, it is not always statistically
relevant to compare compliance levels of council issued permits with PBS issued permits.
Considering permits issued by council employees outside of their municipal area, the sample size is even
smaller and lacking the ability for quantitative analysis.
2.2 Overall compliance
Overall, building permit files audited at council had an average of 63% of the items compliant (MBS and
PBS). Where the permit had been issued by a council employee in their municipality, the permit files
audited had slightly higher levels of compliance: average of 65% of items assessed in each file found to be
compliant.
Compliance was observed to be lower (57%) for permits issued by a council employee for sites outside of
their municipality.
2.3 Comparison of municipal and private building surveyors
The VBA compared the compliance ratings for permits issued by council and the permits issued by PBSs.
Examining various compliance areas, analysis did not return a significant difference in the ratings between
the two practitioner groups.
The findings and actions targeting building surveyors detailed in the industry report apply to both private
and municipal building surveyors and their teams.
Comparison of compliance between permits issued by council within and outside of their municipality was
carried out. Due to the limited sample size, analysis consisted of administrative aspects of the building
permit file and not more specific areas (i.e. forms are a requirement of all permit files so the sample size is
high; where swimming pools are not part of every building permit and the sample size is low).
On average, council employees (MBS/MBS delegate) were less compliant on permits outside of their
council, particularly relating documentation in the building permit file: copy of reports and consents,
planning related information, property information.
The audit found that there is often an assumption made by the RBS submitting the file that the receiving
council would be aware of the conditions of sites and planning envelopes in their areas. The audit looked
for evidence that appropriate checks had been performed by the applicant and included in the council file
when the council employee (MBS/MBS delegate) was operating as the RBS outside of their municipality.
3. Recommendations
The findings and actions outlined in the industry report are directly relevant to council employees. Just as
PBSs, they should focus on improving compliance in:
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Quality of documentation in the permit file – to include supporting documentation (site specific
geotechnical report, energy report, copy of builder’s warranty insurance certificate on file, specifications,
engineer computations)
Quality of drawings – accuracy of plans (building elements properly located) and with sufficient detail
Evidence of consideration and written determination on protection work, protection of the public, partial
compliance under Regulations 608 & 609, alternative solutions
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Victorian Building Authority